Casual restaurant chain Brinker International (NYSE: EAT) will be reporting earnings this Wednesday before market hours. Here’s what to look for.
Brinker International beat analysts’ revenue expectations last quarter, reporting revenues of $1.45 billion, up 6.9% year on year. It was a very strong quarter for the company, with a solid beat of analysts’ same-store sales estimates.
Is Brinker International a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Brinker International’s revenue to grow 3.4% year on year, slowing from the 27.2% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Brinker International has a history of exceeding Wall Street’s expectations.
Looking at Brinker International’s peers in the restaurants segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Kura Sushi delivered year-on-year revenue growth of 23.3%, beating analysts’ expectations by 2.5%, and Darden reported revenues up 5.9%, in line with consensus estimates. Kura Sushi traded down 17.8% following the results while Darden was up 1.2%.
Read our full analysis of Kura Sushi’s results here and Darden’s results here.
There has been positive sentiment among investors in the restaurants segment, with share prices up 12.1% on average over the last month. Brinker International is down 1.8% during the same time and is heading into earnings with an average analyst price target of $187.09 (compared to the current share price of $134.17).
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